Financial Overview As of December 31, 2019, the City of Leavenworth has received the Government Finance Officers’ Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for twenty-five consecutive years for its Comprehensive Annual Financial Report (CAFR). The City has submitted its 2019 CAFR to the GFOA for review. Additionally, the City received the Government Finance Officers’ Association (GFOA) Distinguished Budget Presentation Award for the second time for its 2020 Budget. The City will submit its 2021 budget to the GFOA for review. Effective financial management involves oversight from several people within the organization, as well as, strong internal controls. Financial policies help strengthen internal controls by providing guidelines for daily operations, decisions, and long-term financial planning. These policies are designed to ensure financial stability, provide adequate funding for services, and to maintain public facilities. Financial policies are developed by the Finance staff, reviewed by the City Manager and are approved by the City Commission to ensure the City is functioning in a financially responsible manner and is prepared for changes in economic conditions. Once in place, financial policies need to be reviewed and updated on a regular basis to ensure that they are still relevant to the organization’s activities and processes. The Commission has reviewed and approved the following policies: February 2017: The Commission approved an Economic Development Incentive Policy, which identifies types of incentives the City will offer and the eligibility requirements for each type of incentive. The policy also identifies the methods of evaluation used for each project to determine eligibility. This policy encourages consistency in the application of economic development incentives. March 2017: The City’s Budget Policy formalizes the City’s commitment to a balanced budget, a fund-type of budget format that provides three years of applicable revenues and expenditures presented in financial statement manner. The City’s basis of budgetary accounting conforms to Kansas Cash Basis Budget Laws. March 2017: The City’s Budgetary Reserve Policy was previously approved in December 2003. The policy addressed reserves only for the General Fund and established that goal as 8.33% of annual General Fund expenditures. The new policy incorporates the GFOA recommended minimum of two months of revenues or expenditures as the City’s minimum reserve levels and includes the CIP Sales Tax, County Wide Sales Tax, Sewer, and Refuse
35
